Tuesday, November 12, 2019

[2019 Updated] Zcash Mining 101: Zcash Mining Calculator, Profit Calculator and Algorithm

The Takeaway:

Zcash was launched in 2016, and since then, it has seen steady growth in its popularity as more and more people have moved towards investing in Zcash or Zcash mining. The way it functions makes it stand out from others and gives a positive outlook for what the future holds.

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Zcash is a cryptocurrency that was launched in 2016, and it uses cryptography, which enhances the privacy for its users as compared to Bitcoin and other altcoins. Zcash has a fixed supply of 21 million units, just like Bitcoin.

Mainly, Zcash is a peer to peer (P2P) cryptocurrency like Bitcoin, but its primary focus is on private, anonymous, and fungible transactions that can’t be carried out using Bitcoin. Zcash was forked out of Bitcoin, and earlier, it was known as Zerocoin. This open cryptocurrency uses a zk-SNARK protocol, which is a new cryptographic zero-knowledge proof protocol.

Even though the main focus of Zcash is to provide privacy and anonymity to the user, these functions are not implemented by default in Zcash. The users have the option to make the transactions completely transparent, as well.

 

Zcash Algorithm

Founded by Zooko Wilcox in 2016, Zcash is entirely working on the protocol is the algorithm for proof of work mining, Equihash. Proof of work mining concerns with producing a hash value so that when a value is inserted into a hashing algorithm, the output of a fixed length is produced, which represents the has value.

In proof of work systems, the miners take elements from a block header as input and run it through the hashing algorithm. In the case of Zcash, it is Equihash. Zcash algorithm is known as Equihash, and it is an asymmetric memory oriented proof of work system.

Due to this memory orientation, the mining process using the Equihash algorithm depends on how much RAM a system possesses. The length of time taken by a system to finish a computational problem is decided by the amount of memory that will be needed to hold the data.

Equihash algorithm is often known as ‘ASIC resistant’ as it was designed to avoid ASIC mining centralization. Equihash algorithm is asymmetric, which is important in the proof of work systems as the hashes generated are difficult to prove but easy to verify. After it was launched in 2016, Equihash gained popularity as ASIC resistant algorithm.

Soon after releasing the algorithm, Bitmain, manufacturer of ASIC hardware, launched a custom design hardware system for Zcash mining. This hardware was named Antminer Z9 mini, and it was specially designed on the Equihash algorithm for Zcash mining. This development shows the difficulty faced by developing of a mining algorithm.

 

How to mine Zcash

Now that we have understood the basic algorithm on which the Zcash is based and the algorithm that is used to mine new Zcash. Let us look at the things to notice before an individual enter the Zcash mining pool.

The hardware that is used for any mining process affects the potential mining profits, so understanding and exploring the options carefully is very important. Equihash algorithm depends on high RAM requirements and systems, so the ASIC setup is not the option, and the other ways left are- CPU and GPU.

 

ZCash CPU Equipment

The advantage Zcash mining has over others is that it can be done on a person’s existing CPU, but this can’t be done with Bitcoin. So if you’re planning to mine Zcash, purchasing a new CPU with a better RAM and cooling system will be a sensible option.

 

ZCash GPU Equipment

GPU mining is better and faster as compared to CPU mining, but then it also more expensive. It is important to check the hashing power of a unit as the units are expensive so you should study well before spending any money.

Second hand GPU’s are available as well, but if the systems are not maintained, the cooling systems can blow up, causing bigger loss than expected. The potential to earn more exists with the GPU setup as compared to CPU, so buying a better GPU can be considered as an investment.

 

Zcash Mining Profit Calculator

Just like Bitcoin, every miner is awarded a certain number of Zcash as a reward for their services. However, the reward they receive is affected by several factors; this includes the cost of electricity in the area, equipment purchased, and whether the miner should do the process alone or as a team.

To be on the safer side, various mining profit calculators can help you in understanding the possible profit a person can earn from the mining they do. For example, these calculators would ask for hashing power, power consumption, and cost per kW/h to determine the profit ratio per day and month.

These wallets also help the user understand whether the investment they are making will be worth the efforts and time or not in the future.

 

Zcash Wallets

Once you’ve started earning Zcash coins, it is essential to have a safe place to store the funds, and there are various ways in which these options can be saved. Some of the ways are given below.

1. Internet Wallets: These wallets have apps that can be downloaded in the smartphone, which makes it easier to view and manage the wallet light. Some examples of these wallets are:

2. Hardware Wallets: Hardware wallets are a safe way to store Zcash and other cryptocurrencies in which the data and assets are stored in a device.

3. Exchange Wallets: Exchange wallets are the easiest options to set up. With these, a user has to create an account for exchange supporting Zcash. It’s essential to check the security of exchange.

 

Zcash Mining Pool

Even though the process of mining can be carried out as a lone miner as well, but it is suggested to be a part of a mining pool. This is recommended because of the chances of making Zcash increases in a pool.

It is important to choose a credible Zcash mining pool, for example, Flypool. Flypool is amongst the most used Zcash pool, and the users prefer it. Flypool charges a 1% fee, and the servers used for mining are located all the U.S., Asia, and Europe. Some other mining pools are:

Like other cryptocurrencies, Zcash also has a community on Reddit where people gather together for discussions and the latest news and updates. This Zcash Reddit community has over 15,000 followers, and they contribute to updating people about the most recent happening from the Zcash world.

 

Zcash Faucets

Bitcoin, XRP, Ethereum, etc. have their faucets from where users can earn free cryptocurrencies by doing simple tasks like watching videos, participating in several quizzes, filling up surveys, etc. Zcash distribution is also done through many sites via jackpot games and lotteries.

 

Conclusion

Zcash is a cryptocurrency that is developed to overcome the issues faced by Bitcoin’s privacy. It uses the latest Equihash algorithm, which helps it to carry out both- private and transparent transactions. Users value privacy, and this in the future will provide a positive outlook for Zcash miners.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Harry Finnerty
Harry Finnerty
After completing his graduation from Strayer University, Harry started to work in the real estate industry. However, soon he realized that his real interest is in the financial industry and once he came to know about bitcoin and the technology behind it, he dedicated his life to understand and write about it.

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